The cash corn market is studied using price-time geometry theory presented by B. Cowan in his published works. Price-Time Vectors[1], introduced by B. Cowan, allow the analyst to unify into a single element the price-time action. The length and orientation of these PTVs define the spacing between points of force in the market. The relative spatial distribution of these points follows simple mathematical ratios and defines geometrical structures.
Furthermore, financial markets develop within the limits of growth spirals. As more energy is inserted into the markets, each turn of the spiral is larger than the preceding one. This translates into larger price swings.
Geometry analysis of the cash corn market predicts much more higher prices for the coming years, probably similar to those of the soybean market. The January 2014 bottom in corn may be the beginning of a major bull market.
Figure 1 is a daily price-time chart for cash corn at Decatur, Illinois from 2012 to 2014. It contains two PTVs, AC and BC, which defined the bear market from the tops of August 2012 and March 2013 to the recent bottom of January 2014.
According to geometry analysis, there are two important geometric structures currently unfolding in the cash corn market. Each one of the PTVs from Figure 1 define the completion of faces within each structure. In general, when one or more faces are completed there is an important change in trend.
Additionally, PTV AC may be a paired PTV defining a turn within the current growth spiral, which also indicates much higher prices for corn in the coming years. Corn could reach the price level soybean currently has.
If, as the price-time action in the market develops, the above conditions prove to be true, corn prices could easily break $10 per bushel in the next few years. This means there is a great opportunity in corn in the long side.
[1] PTV stands for Price-Time Vector. This concept was introduced by Bradley Cowan in his writings. Both PTV and Price-Time Vector are trademarks of Bradley Cowan.
Update: Corn June 2014
Furthermore, financial markets develop within the limits of growth spirals. As more energy is inserted into the markets, each turn of the spiral is larger than the preceding one. This translates into larger price swings.
Geometry analysis of the cash corn market predicts much more higher prices for the coming years, probably similar to those of the soybean market. The January 2014 bottom in corn may be the beginning of a major bull market.
Figure 1 is a daily price-time chart for cash corn at Decatur, Illinois from 2012 to 2014. It contains two PTVs, AC and BC, which defined the bear market from the tops of August 2012 and March 2013 to the recent bottom of January 2014.
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| Figure 1 Daily cash prices for corn at central Illinois from 2012 to 2014. Price-Time Vectors defining completed faces of a geometric structure indicating a rally from January 2014. |
According to geometry analysis, there are two important geometric structures currently unfolding in the cash corn market. Each one of the PTVs from Figure 1 define the completion of faces within each structure. In general, when one or more faces are completed there is an important change in trend.
Additionally, PTV AC may be a paired PTV defining a turn within the current growth spiral, which also indicates much higher prices for corn in the coming years. Corn could reach the price level soybean currently has.
Conclusion
Price-time geometry indicates that the January 2014 bottom could be the beginning of a major bull market in corn. This analysis relies on the fact that the two PTVs shown in Figure 1 defined the partial completion of a couple of geometric structures currently unfolding in cash corn. Additionally, the current turn within the growth spiral is not complete and it predicts higher prices.If, as the price-time action in the market develops, the above conditions prove to be true, corn prices could easily break $10 per bushel in the next few years. This means there is a great opportunity in corn in the long side.
[1] PTV stands for Price-Time Vector. This concept was introduced by Bradley Cowan in his writings. Both PTV and Price-Time Vector are trademarks of Bradley Cowan.
Update: Corn June 2014
Ricardo Da Costa
Grain Market Analysis
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